Economist urges President-Elect to prioritise Ghana's ailing economy

In the wake of Ghana's successful elections, renowned economist George Haldane-Lutterodt has urged President-Elect John Mahama to make addressing the country's ailing economy his top priority.

Mr Haldane-Lutterodt stressed the need for immediate action to revive Ghana's economy, which has encountered significant challenges in recent years.

"The new government should not shy away at taking a critical look at the Free SHS on whether the country can afford this in it present form without a radical review of this policy" he noted.

He called for a fiscal discipline in the management of the country's finances which he said was non-existent in the previous administration.

“This election was about the economy and nothing more, bread and butter and not sloganeering;the government must endeavour to reset the fundamentals of the economy,” he stated in an interview with the Graphic Business in Accra yesterday.

Ghana’s economy

The country's economic difficulties can be attributed to several factors, including the government's inability to capitalize on current high commodity prices, a sharp rise in public debt, and a lack of economic diversification.

Once regarded as one of Africa's most promising economies, Ghana has faced challenges in sustaining growth in recent years. The country's GDP growth rate has slowed, and inflation remains persistently high.

Additionally, Ghana's public debt has surged to concerning levels, with the debt-to-GDP ratio climbing to 82.52 percent, making it increasingly difficult for the government to fulfill its financial obligations.

Addressing challenges

To address these challenges, Mr Lutterodt recommends that the President-Elect prioritizes economic diversification, investing in key sectors such as agriculture, manufacturing, and tourism. 
He also emphasizes the need for fiscal discipline, urging the government to implement measures to reduce the budget deficit and stabilize the economy.

“The government must take the bull by the horn and invest in agriculture to bring down food inflation and also tackle the bottle-necks which affect the manufacturing sector," he stated.

In addition, he suggested that the government explores innovative financing options, such as public-private partnerships, to support key infrastructure projects. 

He also recommended investing in human capital, particularly in education and skills development, to ensure that Ghana's workforce is equipped to compete in the global economy.

Economic reform

He stressed the importance of making  the country work again through sound economic policies.

"In fact the election has shown that it is obvious in its present form, the free SHS Policy has been abused and has proved to be a huge financial drain on the economy which Ghana cannot afford.

"Even advanced countries, far richer than us cannot afford this kind of populist social engineering," he told the Graphic Business.

According to him these are some of the hard decisions the new government will have to make which he said it is a reality of the  chronic economic situation in Ghana.

He called on the new administration to institute an urgent need for economic reform to set the fundamentals of an economic revival in the country.

“With the right policies and strategies in place, Ghana can revitalize its economy, create jobs, and improve living standards for its citizens,” he noted.

He congratulated the new President-elect and called on Ghanaians to support the new President to achieve its goals.